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MNI BRIEF: US Treasury Raises Q2 Borrowing Estimate By $449B

(MNI) WASHINGTON

The U.S. Treasury Department Monday announced it expects to borrow USD726 billion in privately-held net marketable debt in the second quarter, USD449 billion more than previously announced in January.

Treasury said that is primarily due to a lower cash balance (USD322 billion) and projections of lower receipts and higher outlays (USD117 billion). Treasury is assuming a cash balance of USD550 billion at the end of June. For the third quarter, Treasury plans to borrow USD733 billion, assuming an end-of-September cash balance of USD600 billion. The Treasury's next quarterly refunding will be released at 8:30 a.m. May 3.

The estimates assume enactment of a debt limit suspension or increase and if Congress does not act to address the debt limit the Treasury's cash balance may be lower than assumed and would expect to borrow less. During the first quarter, Treasury borrowed USD657 billion.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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